BILPOWER LIMITED. Annual Report

Transcription

1 BILPOWER LIMITED Annual Report

2 Board of Directors Mr. Suresh Kumar Choudhary Mr. Naresh Kumar Choudhary Mr. Rajendra Kumar Choudhary Mr. Gouri Sankar Sarkar Mr. Mrugen Shah Registered Office 201, Vikas Chambers, Junction of Link & Marve Road, Malad (West), Mumbai Tel - (91 22) Fax - (91 22) investors@bilpower.com Company Secretary & Compliance Officer Ms. Priyanka Jain Registrars & Share Transfer Agents for Physical & Electronic Shares M/s. System Support Services 209, Shivai Industrial Estate, Near Logitech Park, 89 Andheri Kurla Road, Andheri (East), Mumbai Phone - (91 22) (5 Lines) sysss72@yahoo.com Main Banker State Bank of India Industrial Finance Branch Snehal Chambers, Telly Gulli, Andheri (East), Mumbai Branch Offices / Manufacturing Units Baroda Office 19, R.C. Patel Industrial Estate, Akota, Baroda Phone - (0265) / Fax - (0265) Baroda Unit , G.I.D.C. Industrial Estate, POR, Ramangamdi, Baroda Phone - (0265) Telefax - (0265) Uttaranchal Unit Unit D 10 / 11, Raipur Notified Area, Bhagwanpur, Roorkee, Dist - Haridwar, State - Uttaranchal. Phone - (0133) Statutory Auditors M/s Bansal, Bansal & Co. Chartered Accountants 6 / 152, Sanjay Building, Mittal Estate, Andheri-Kurla Road, Andheri (East), Mumbai CONTENTS PAGE No. General Information 2 Notice 3 Directors Report 6 Management Discussion and Analysis 8 Report on Corporate Governance 9 Auditors Report 16 Balance Sheet 19 Profit and Loss Accounts 20 Cash Flow Statement 21 Notes forming part of Financial Statement 25 Balance Sheet as Abstract and Company s 31 General Business Profile Important Communication to Members The Ministry of Corporate Affairs has taken a Green Initiative in the Corporate Governance by allowing paperless compliances by the companies and has issued circulars stating that service of notice/documents including Annual Report can be sent by to its members. To support this green initiative of the Government in full measure, members who have not registered their addresses, so far, are requested to register their addresses, in respect of electronic holdings with the Depository through their concerned Depository Participants. Members who hold shares in physical form are requested to update their address with the Company or M/s. System Support Services (RTA), to enable us to send all the documents through electronic mode in future.

3 Bilpower Limited NOTICE NOTICE is hereby given that the 22nd Annual General Meeting of the Members of BILPOWER LIMITED will be held on Friday, 30th September, 2011 at 1st Floor, Landmark Building, Mith Chowky, Link Road, Malad (West), Mumbai at p.m. to transact, with or without modification(s), as may be permissible, the following business: ORDINARY BUSINESS:- 1. To receive, consider and adopt the Audited Balance Sheet as at 31st March, 2011 and the Profit & Loss Account for the year ended on that date together with the reports of the Directors and Auditors thereon; 2. To declare a Dividend on 1,05,00,800 equity shares for the year ended 31st March, 2011; 3. To appoint a Director in place of Mr. Suresh Kumar Choudhary, who retires by rotation and being eligible offers himself for re-appointment; 4. To appoint a Director in place of Mr. Rajendra Kumar Choudhary, who retires by rotation and being eligible offers himself for re-appointment; 5. To consider and if thought fit, to pass, the following resolution as an Ordinary Resolution:- RESOLVED THAT pursuant to the provisions of Section 224 and other applicable provisions, if any, of the Companies Act, 1956, M/s. Bansal, Bansal & Co., Chartered Accountants, be and are hereby appointed as the Statutory Auditors of the Company to hold office from the conclusion of this Annual General Meeting until the conclusion of the next Annual General Meeting of the Company, on such remuneration as may be fixed by the Board of Directors of the Company. RESOLVED FURTHER THAT the Board be and is hereby authorised to do all such acts, deeds, matters and things as may be necessary to implement this resolution. SPECIAL BUSINESS:- 6. To consider and, if thought fit, to pass, with or without modification(s), the following resolution as a Special Resolution:- RESOLVED THAT pursuant to Section 372A and all other applicable Provisions, if any, of the Companies Act, 1956 and such other approvals, consents, permissions or sanctions of any other appropriate authorities or entities including Banks/Financial Institutions, as the case may be, consent of the Company be and is hereby accorded to the Board of Directors of the Company (hereinafter referred to as the Board which term shall include a Committee of Directors constituted or to be constituted for this purpose including any person or persons who may be authorised by the Board), to give any guarantee on behalf of or in favor of Tarapur Transformers Limited and / or Bil Energy Systems Limited aggregating to the extent of and not exceeding ` 150 Crores, at any time, notwithstanding that such guarantee or such guarantee together with the company s existing loans, investments and guarantee in all other bodies corporate may be in excess of the limits prescribed under Section 372A of the Act. RESOLVED FURTHER THAT for the purpose of giving effect to this Resolution, the Board be and is hereby authorized on behalf of the Company to negotiate the terms, conditions and other related matters for providing any guarantee on behalf of or in favor of Tarapur Transformers Limited and Bil Energy Systems Limited AND to do all acts, deeds, matters and things and to settle any question, difficulty or doubt that may arise with regard to such guarantee or otherwise reconsider the matter due to change in circumstances as it may in its absolute discretion deem fit, without being required to seek any further consent or approval of the members or otherwise to the end and intent that the members shall be deemed to have given their approval thereto expressly by the authority of this Resolution and to finalise and execute all the documents and writings as may be necessary or expedient to give effect to this Resolution. By Order of the Board of Directors, For Bilpower Limited Mumbai, 13th August, , Vikas Chambers, Junction of Link & Marve Road, Malad (West), Mumbai Registered Office:- NOTES:- 3 Priyanka Jain Company Secretary a. The explanatory statement pursuant to Section 173(2) of the Companies Act, 1956 in respect of the business under item no. 6 is annexed hereto. b. A MEMBER ENTITLED TO ATTEND AND VOTE AT THE ANNUAL GENERAL MEETING IS ENTITLED TO APPOINT A PROXY OR PROXIES TO ATTEND AND VOTE ON A POLL INSTEAD OF HIMSELF AND THE PROXY / PROXIES NEED NOT BE A MEMBER OF THE COMPANY. THE INSTRUMENT APPOINTING A PROXY/PROXIES SHOULD, HOWEVER, BE DEPOSITED AT THE REGISTERED OFFICE OF THE COMPANY NOT LESS THAN 48 HOURS BEFORE THE COMMENCEMENT OF THE MEETING.

4 22nd Annual Report c. In terms of the Articles of Association of the Company, read with Section 256 of the Companies Act, 1956, Mr. Suresh Kumar Choudhary and Mr. Rajendra Kumar Choudhary, Directors, retire by rotation at the ensuing Annual General Meeting and being eligible offer themselves for re-appointment. The Board of Directors of the Company commends their respective re-appointments. d. Corporate members intending to send their authorized representatives to attend the meeting are requested to send a certified copy of the Board Resolution authorizing their representatives to attend and vote on their behalf at the meeting. e. (1) The Company has notified closure of register of members and transfer books from 26th September, 2011 to 30th September, 2011 (both days inclusive) for determining the names of members eligible for dividend on equity shares, if declared at the meeting. (2) The dividend, if declared, on equity shares at the meeting, will be paid after 30th September, 2011, in respect of shares held in Physical form, to those members who are entitled to the same and whose names appear in the Company s Register of Members after giving effect to all valid share transfers lodged with the Company / Registrar and Share Transfer Agents at the end of business hours on 23rd September, 2011 (24th September, 2011 and 25th September, 2011 being Saturday and Sunday) and, in respect of shares held in the Electronic form, to those members whose names appear in the statement of beneficiary ownership furnished by the National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL). f. Members holding shares in Physical form are requested to notify change of address, if any, to Registrar and Share Transfer Agents before 23rd September, 2011 (24th September, 2011 and 25th September, 2011 being Saturday and Sunday) to be eligible for dividend of this year, if any and those who hold shares in dematerialized form are requested to notify to their Depository participants their change in address. g. As per the provisions of the Companies Act, 1956, facility for making nomination is available to the shareholders in respect of the Shares held by them. Nomination Forms can be obtained from the Registrar and Share Transfer Agents of the Company. h. As a measure of economy, copies of Annual Report will not be distributed at the Annual General Meeting. Members are, therefore, requested to bring their respective copy of the Annual Report to the Meeting and affix their signature at the place provided on the attendance slip annexed to the Proxy form and hand over the slip at the entrance to the place of the Meeting. i. Non-Resident Indian Members are requested to inform the Company s Registrar and Share Transfer Agents M/s. System Support Services immediately of a. The change in the residential status on return to India for permanent settlement. b. The particulars of the bank account maintained in India with complete name, branch, account type, account number and address of the bank with pin code number, if not furnished earlier. j. Your Company is concerned about the environment and utilizes natural resources in a sustainable way. Recently, the Ministry of Corporate Affairs (MCA), Government of India, through its Circular Nos. 17/2011 and 18/2011, dated 21st April, 2011 and 29th April, 2011 respectively, has allowed companies to send official documents to their shareholders electronically as part of its green initiatives in corporate governance. Recognizing the spirit of the circular issued by the MCA, we have already sent s to those shareholders who have registered their addresses with their depositories and in turn have sent this Annual report to all the shareholders who have given their consent for receiving documents through mode. We now request all the shareholders who have not given their consent to please support this Green initiative and update your address with your depository participant to ensure that the annual report and other documents reach you on your preferred . k. Members who hold shares in dematerialized form may kindly note that their bank account details, as furnished by their depositories to the Company, will be printed on their dividend warrant as per the applicable regulations of the depositories and the Company will not entertain any direct request from such members for deletion of or change in such bank account details. Further, instructions, if any, already given by them in respect of shares held in physical form will not be automatically applicable to the shares held in electronic form. Members who wish to change such bank account details are therefore requested to advise their depository participants about such change with complete details of bank accounts. Members are encouraged to utilize the Electronic Clearing System (ECS) for receiving dividends. l. Relevant documents referred to in the accompanying Notice and Explanatory Statement are open for inspection at the Registered Office of the Company on all working days except Saturdays between a.m. to 1.00 p.m. up to the date of the 22nd Annual General Meeting. m. In line with the provisions of amended Clause 32 of the Listing Agreement and circular issued by SEBI, the Company has opted to circulate abridged Annual Accounts of the Company for the financial year under review. The detailed Annual Accounts of the Company are available on any working day at the Registered Office of the Company to the Shareholders of the Company requiring such information. n. As per the provisions of the Section 205C of the Companies Act, 1956, unclaimed dividend for the year will be transferred to Investors Education and Protection Fund on or before 11th September, Shareholders who have not claimed Dividend for the year are requested to claim the dividend on or before 11th September, Members wishing to claim dividends, which remain unclaimed, are requested to correspond with Ms. Priyanka Jain, Company Secretary, at the Company s registered office. 4

5 Bilpower Limited Explanatory Statement As required under Section 173(2) of the Companies Act,1956, in respect of the item of Special Business mentioned in the Notice:- Item No.6: As per Section 372A of the Companies Act, 1956, the aggregate of loans, investments and guarantee in other companies shall not exceed 60% of the paid-up capital and free reserves or 100% of the free reserves, whichever is higher. As on , total amount of loans, investments and guarantee given was within the limits specified under Section 372A of the Companies Act, However, due to occurrence of two events viz.: 1. Tarapur Transformers Limited and Bil Energy Systems Limited ceasing to be subsidiary of the Company; and; 2. Pursuant to High Court Order dated 24th September, 2010, manufacturing unit of the Company at Wada getting demerged into a resultant company Bil Energy Systems Limited; resulted in reduction in free reserves and net worth of the Company relatively. After the above events, this is the first Annual General Meeting of the Shareholders of the Company. Hence, shareholders approval is sought for giving consent to Board of Directors for giving guarantee on behalf of or in favor of Tarapur Transformers Limited and Bil Energy Systems Limited to the extent of and not exceeding ` 150 crores, at any time, notwithstanding that such guarantee or such guarantee together with the Company s existing loans, investments and guarantee in all other bodies corporate shall be in excess of the limits prescribed under Section 372A of the Act. Thus, it is proposed to authorize the Board to give guarantee as aforesaid with wider choice, in the interest of the Company. Your Directors recommend this resolution and request you to uphold the same by means of Postal Ballot. No Director shall be deemed to be interested in the said resolution, except Mr. Naresh Kumar Choudhary and Mr. Rajendra Kumar Choudhary, who are Directors of Bil Energy Systems Limited and Tarapur Transformers Limited; Mr. Suresh Kumar Choudhary and Mr. Mrugen Shah who are Directors of Bil Energy Systems Limited. By Order of the Board of Directors, For Bilpower Limited Mumbai, 13th August, 2011 Registered Office:- 201, Vikas Chambers, Junction of Link & Marve Road, Malad (West), Mumbai Priyanka Jain Company Secretary 5

6 22nd Annual Report DIRECTORS REPORT Dear Members, The Directors of your Company have pleasure in presenting Twenty Second Annual Report together with the Audited Accounts and Auditors Report for the year ended 31st March, Financial Performance: The financial performance of the Company for the year ended 31st March, 2011 is as summarized below:- Particulars Gross Turnover & Other Income Profit before Interest, Depreciation & Taxation Less Interest (737.12) (846.73) Profit before Depreciation & Taxation Less Depreciation (48.35) (282.65) Profit before tax Less Provision for Taxation (Incl. Deferred Tax) (203.39) (390.55) Net Profit for the year Add Surplus brought forward from previous Year Profit available for Appropriations Appropriations:- Transfer to General Reserve Proposed Dividend Dividend Distribution Tax Balance Carried to Balance Sheet Performance Review: The Turnover of the Company decreased and stood at ` Lacs and net profit has also decreased to ` Lacs for the year , mainly due to demerger of manufacturing unit of the Company at Wada into resultant Company Bil Energy Systems Limited pursuant to High Court Order dated 24th September, Dividend: Keeping in view the lower profits as well as recognizing the need to reward the shareholders, your Directors are pleased to recommend for the approval of the shareholders, a dividend of 10% (` 1/- per equity share) on 1,05,00,800 equity shares of ` 10/- each for the financial year ended on 31st March, Directors: Mr. Suresh Kumar Choudhary and Mr. Rajendra Kumar Choudhary, Directors, retire from the Board by rotation and being eligible have offered themselves for re-appointment at the ensuing Annual General Meeting. The Notice convening the Annual General Meeting includes the proposals for re-appointment of Directors. Brief resumes of the above Directors, nature of their expertise in specific functional areas and their shareholding in the Company, as stipulated under Clause 49 of the Listing Agreement are given in the Report on Corporate Governance forming part of the Annual Report. Mr. Ashok Bansal, Mr. V.K. Pandit and Mr. Vinod Kumar Agarwal have tendered their resignation w.e.f 31st December, 2010, 27th March, 2011 and 30th March, 2011 respectively. Your Directors wish to place on record their sincere appreciation for the invaluable services rendered by them. 5. Whole Time Company Secretary under Section 383A of the Companies Act, 1956: During the year, Ms. Priyanka Jain was appointed as Whole time Company Secretary of the Company with effect from 15th February, Demerger of Wada Unit: Pursuant to the scheme of arrangement under Sections 391 to 394 of the Companies Act, 1956 (the scheme), manufacturing unit at Wada belonging to the Company was demerged into resultant Company viz. Bil Energy Systems Limited (BESL) with effect from 1st April, 2010 on a going concern basis. The Scheme has been approved inter alia by the Shareholders of the Company on 18th May, 2010 and Hon ble High Court of Bombay on 24th September, 2010 and the order has been filed with the Registrar of Companies, Maharashtra, Mumbai on 14th October, 2010 and became effective. 7. Directors Responsibility Statement: Pursuant to the requirement under Section 217(2AA) of the Companies Act, 1956, the Directors, to the best of their knowledge and belief, confirm that: - a) In the preparation of the Annual Accounts, the applicable accounting standards have been followed and that there are no material departures from the same; b) Appropriate accounting policies have been selected and applied consistently and such judgments & estimates have been made that are reasonable and prudent so as to give a true and fair view of the state of affairs of the Company as at 31st March, 2011 and of the Profit of the Company for the accounting year ended on that date; 6

7 Bilpower Limited c) Proper & sufficient care has been taken for the maintenance of adequate accounting records in accordance with the provisions of the Companies Act, 1956 for safeguarding the assets of the Company and for preventing & detecting fraud and other irregularities; and; d) The annual accounts of the Company have been prepared on a going concern basis. 8. Auditors: The present Statutory Auditors of the Company, M/s. Bansal, Bansal & Co., Chartered Accountants, Mumbai, having firm registration number W issued by the Institute of Chartered Accountants of India (ICAI), retire as Statutory Auditors at the conclusion of this Annual General Meeting. They are eligible for re-appointment and the Company has received a Certificate from them that their re-appointment, if made, would be within the limits under Section 224 (1B) of the Companies Act, 1956 and that they are not disqualified for such an appointment within the meaning of sub-sections (3) and (4) of Section 226 of the Companies Act, Their re-appointment is recommended by the Board. 9. Auditors Report: The notes on accounts referred to in the Auditors Report are self explanatory and therefore do not call for any further comments under Section 217(3) of the Companies Act, The Accounts have been prepared in accordance with the Accounting Standards prescribed by The Institute of Chartered Accountants of India in this regard. 10. Tax Provisions: The Company has made adequate provisions as required under the provisions of Income Tax Act, 1961 as well as other relevant laws governing taxation on the Company. 11. Fixed Deposits: During the year ended on 31st March 2011, the Company has not accepted any Fixed Deposits from public under Section 58A & 58AA of the Companies Act, 1956 read with the Companies (Acceptance of Deposits) Rules, Management s Discussion and Analysis Report: A detailed review of the operations, performance and future outlook of the Company and its businesses is given in the Management s Discussion and Analysis Report, which forms part of this Report as Annexure- I. 13. Corporate Governance: We adhere to the principle of Corporate Governance mandated by the Securities and Exchange Board of India (SEBI) and have implemented all the prescribed stipulations. As required by Clause 49 of the Listing Agreement, a detailed report on Corporate Governance forms part of this Report as Annexure II. The Auditors Certificate on compliance with Corporate Governance requirements by the Company is enclosed after the Corporate Governance Report. 14. Energy Conservation and Technology Absorption: In view of the nature of business of the Company which is labour intensive, the information required under Section 217(1) (e) of the Companies Act, 1956, read with the Companies (Disclosure of Particulars in Report of the Board of Directors) Rules, 1988 with respect to conservation of Energy, Technology absorption is not given as electricity purchased and consumption per unit of production is not sizeable. 15. Foreign Exchange earnings and outgo: Your Company earned/spent foreign exchange as under during the year. Earnings : ` Nil Outgo : ` lacs 16. Particulars of Employees: There is no employee drawing remuneration which is in excess of the limits laid down in Section 217(2A) of the Companies Act, Acknowledgement: The Board wishes to place on record its sincere appreciation for the assistance and cooperation received from Bankers, Government Departments and other Business Associates for their continued support towards the conduct of operations of the Company efficiently. The directors express their gratitude to the shareholders for their continuing confidence in the Company. The directors also acknowledge the hard work and persuasive efforts put in by the employees of the Company in carrying forward Company s vision and mission. On behalf of the Board of Directors, For Bilpower Limited Mumbai, 13th August, 2011 Suresh Kumar Choudhary Chairman 7

8 22nd Annual Report Background: MANAGEMENT DISCUSSION & ANALYSIS REPORT Annexure I to the Directors Report Bilpower is a Power Engineering Solutions Company primarily into the manufacturing of Transformers Cores & Lamination. The key USP of Bilpower are timely delivery with lowest losses in the cores. Bilpower is one of the largest players in third party manufacturing of Transformers Cores & Laminations in India. Indian Scenario: The year which went by will be remembered for the inflationary trends in the Indian economy. This, coupled with high interest rates, has contributed to the slowing of growth rate of the business in general and of the power sector in particular. Indian Power Scenario: Although the power sector in India has huge potential, the delay in starting the UMPPs awarded already and in awarding fresh ones is becoming one of the biggest hindrances in the growth of the Indian economy. Thankfully the government is fully aware of this and we have every reason to be hopeful of a recovery in the sector. Operating Results of the Company: The Financial Statements have been prepared in compliance with the requirements of the Companies Act, 1956 and Accounting Standards (AS) notified by the Companies (Accounting Standard) Rules, The salient features of the Company s performance are:- Total Sales of ` Lacs. Net profit of ` Lacs Earning Per Share (EPS) for the year is ` 4.10 With a net worth of about ` Lacs as on 31st March, 2011, Bilpower Limited considers itself poised to cater to increased demand in the power sector with a good growth in the bottom line also. Outlook for the Company: The management assures that the Company s business plan for the coming year should yield good results which will be better than the industry averages. Demerger: Pursuant to the scheme of arrangement under Sections 391 to 394 of the Companies Act, 1956 (the scheme), manufacturing unit at Wada belonging to the Company was Demerged into Bil Energy Systems Limited (BESL) with effect from 1st April, 2010 on a going concern basis. The Scheme has been approved inter alia by the Shareholders of the Company on 18th May, 2010 and Hon ble High Court of Bombay on 24th September, 2010 and the order has been filed with the Registrar of Companies, Maharashtra, Mumbai, on 14th October, 2010 and became effective. Internal Control and their adequacy: The Internal audit was carried out by an independent firm of Chartered Accountants who conducted the audit on the basis of Annual Audit Plan. The process includes review and evaluation of effectiveness of the existing process, controls and compliance. It also ensures adherence to policies and systems and mitigation of the operational risk perceived for each area under audit. Significant observations including recommendations for improvement of the business process are reviewed by the Management before reporting to the Audit Committee which reviews the Internal Audit procedures, findings and status of implementation of the agreed action plan. Human Resources: During the year under review, Human Resource Department continued with its initiatives towards development, enhancement and retention of workforce. Your Company strongly believes that employees are central to the Company s transformation agenda and that it is important to build capabilities of employees to handle both current and future needs. During the year, the Company continued to work on identifying the needs of employees across all categories and level. The Company has built a strong team of qualified and competent professionals to meet the emerging business challenges and market competition. Risk and Concerns: The Company has to mainly depend on the foreign suppliers for import of Electrical Steel. Any delay in procurement of the same would impact the financials of the Company. However, the Company has over the past 2 decades tied up with almost all the major global players and has developed a strong relationship with these suppliers. Further, fluctuations in the prices of Electrical Steel would also have an impact on the bottom line of the Company. Cautionary Statement: Statements in the Management Discussion and Analysis, describing the Company s objectives, projections and estimates, are forward-looking statements and progressive within the meaning of applicable security laws and regulations. Actual results may vary from those expressed or implied, depending upon economic conditions, Government policies and other incidental/related factors. On behalf of the Board of Directors, For Bilpower Limited Mumbai, 13th August, Suresh Kumar Choudhary Chairman

9 Bilpower Limited Annexure II to the Directors Report REPORT ON CORPORATE GOVERNANCE (As required under Clause 49 of the Listing Agreement entered into with the Stock Exchanges) Corporate Governance is the application of best management practices, compliance of law and adherence to ethical standards to achieve Company s objective of maximizing stakeholders value and discharge of social responsibility. The Corporate Governance structure in the Company assigns responsibilities and entrusts authority among different participants in the organization viz. the Board of Directors, the Senior Management, Employees etc.. The Company has adopted the requirements of Corporate Governance under Clause 49 of the Listing Agreement, the disclosure requirements of which are given below: Mandatory Requirements:- 1. Company s Philosophy on Corporate Governance:- The Company s philosophy on Corporate Governance is to observe the highest level of ethics in all its dealings, to ensure the efficient conduct of the affairs of the Company to achieve its goal of maximizing value for all its stakeholders. 2. Board of Directors (Board):- a) Board Composition:- The Board of the Company should consist of optimum combination of Executive, Non Executive Independent Directors, which should be in conformity with the requirement of Clause 49 of the Listing Agreement with Stock Exchanges. However, after the resignation of two independent non-executive Directors in the month of March, 2011, the Company, in accordance with the provisions of Clause 49(I) (C) (iv) of the Listing agreement, is in process of conforming to the said clauses within the stipulated period mentioned therein. The present strength of the Board is Five (5) Directors, comprising of Chairman Executive Director, one Promoter Non Executive Director, one Whole Time Director and two Independent & Non Executive Directors. The Board Members possess the skills, expertise & experience necessary to guide the Company. Name of Director Category of Directorship Designation Mr. Suresh Kumar Choudhary Promoter Executive Chairman Mr. Naresh Kumar Choudhary Promoter Non - Executive Director Mr. Rajendra Kumar Choudhary Promoter Executive Whole Time Director Mr. Gouri Sankar Sarkar Independent Non Executive Director Mr. Mrugen Shah Independent Non Executive Director b) Board Meetings and attendance of Directors:- During the financial year ended on 31st March 2011, seven (7) Board Meetings were held on the following dates:- 18th May, 2010, 14th August, 2010, 6th September, 2010, 11th November, 2010, 21st January, 2011, 14th February, 2011 and 14th March, Agenda papers containing all necessary information / documents are made available to the Board in advance to enable the Board to discharge its responsibilities effectively and take informed decisions. Where it is not practicable to attach or send the relevant information as part of Agenda Papers, the same are tabled at the meeting or / and the presentations are made by the concerned managers to the Board. Considerable time is spent by the Directors on discussions and deliberations at the Board Meetings. The information as specified in Annexure 1A to Clause 49 of the Listing Agreement is regularly made available to the Board, whenever applicable, for discussion and consideration. The attendance at the Board Meetings held during the year and attendance at the last Annual General Meeting, number of directorships in other Public Limited companies and membership in committees across various companies of which the Director is a Member / Chairman are given below: - Name of Directors No. of Board Meetings Attended Attendance at last AGM held on 30th September, # No. of Directorship held in other Companies Committee Memberships / Chairmanships Membership Chairmanship Mr. Suresh Kumar Choudhary - Absent Mr. Naresh Kumar Choudhary 7 Present Mr. Rajendra Kumar Choudhary 7 Present *Mr. Ashok Bansal 4 Present *Mr. Vinod Kumar Agarwal 5 Absent *Mr. V.K. Pandit 2 Absent Mr. Gouri Sankar Sarkar 1 Present Mr. Mrugen Shah 3 Present # Excluding Private Companies and Companies under Section 25 of the Companies Act, * Resigned as Director during the year.

10 22nd Annual Report The necessary disclosure regarding Committee positions have been made by all the Directors. None of the Directors on the Board is a Member of more than 10 Committees and Chairman of more than 5 Committees (as specified in Clause 49), across all companies in which they are Directors. c) Information of Directors Re-appointment:- The profiles of Directors who are seeking re-appointment at the Annual General Meeting are furnished below:- Mr. Suresh Kumar Choudhary, aged 53 years, designated as Promoter Director. He has more than 28 years of experience in the field of manufacturing of electrical lamination, distribution and power transformers, CT/PT Metering sets. He is holding 5,57,683 equity shares of the Company. Mr. Rajendra Kumar Choudhary, aged 51 years, designated as Director has over 24 years of experience in the field of manufacturing of electrical lamination, distribution and power transformers, Motor Stamping and Banking & Finance. As a director of the Company he is actively involved in day to day operations of the Company, and heads the marketing and finance operations of the Company. He is holding 3,74,752 equity shares of the Company. Committees of the Board of Directors of the Company:- 3. Audit Committee:- a) Composition and attendance: The Audit Committee comprises of experts specializing in accounting / financial management. The Chairman of the Audit Committee is a Non-executive and Independent Director. The composition and attendance of Audit Committee is as follows:- Name of the Members Position Category Attendance Mr. Mrugen Shah Chairman Independent & Non Executive Director 2 Mr. Rajendra Kumar Choudhary Member Whole Time Director 5 *Mr. Vinod Kumar Agarwal Member Independent & Non Executive Director 4 *Note: Resigned as Director and member of Audit Committee with effect from 30th March, The Audit Committee is constituted in accordance with the provisions of Clause 49 of the Listing Agreement and the Companies Act, All the members of Audit Committee possess knowledge of corporate finance, accounts and Company law. During the financial year , five (5) Audit Committee meetings were held as under: 17th May, 2010, 14th August, 2010, 11th November, 2010, 14th February, 2011 and 14th March, b) Power & Terms of Reference: The power and terms of reference of the Audit Committee are as mentioned in Clause 49 II (C), (D) & (E) of the Listing Agreement entered into with the Stock Exchanges and include overseeing the Company s financial reporting process, reviewing with the management the financial statements and the adequacy of the internal audit function and to discuss significant internal audit findings, statutory compliance issue and issues related to risk management and compliances. The Group Advisor and the Statutory Auditors are invited to the meeting. 4. Remuneration Committee: a) Composition and attendance: The composition of Remuneration Committee is as follows:- Name of the Members Position Category Mr. Mrugen Shah Chairman Independent & Non Executive Director Mr. Rajendra Kumar Choudhary Member Whole Time Director *Mr. Vinod Kumar Agarwal Member Independent & Non Executive Director *Note: Resigned as Director and member of Remuneration Committee with effect from 30th March, During the financial year , Remuneration Committee meeting was held on 21st January, b) Terms of Reference:- The broad terms of reference of the committee are to appraise the performance of Chairman, Managing Director, Whole Time Directors and Chief Executive Officer, determine and recommend to the Board compensation payable to Chairman, Managing Director, Whole Time Directors and Chief Executive Officer. The Remuneration policy of the Company is based on review of achievements. The remuneration policy is in consonance with the existing industry practice. c) Remuneration Policy:- Subject to approval of the Board of Directors and subsequent approval by the members at the Annual General Meeting and such authorities as the case may be, remuneration of Chairman, Managing Director, Whole Time Directors, Chief Executive officer is fixed by the Remuneration Committee. The remuneration is decided by the Remuneration Committee taking into consideration various factors such as qualifications, experience, expertise, prevailing remuneration in the competitive industries, financial position of the Company etc. The remuneration structure comprises of basic salary, perquisites, allowances (fixed component), and contribution to provident fund, in accordance with the provisions of the Companies Act,

11 Bilpower Limited 5. Shareholders / Investors Grievance Committee: a) Composition and attendance: The Board has delegated the powers to approve transfer of shares etc. to this Committee. The composition and attendance of Shareholders / Investors Grievance Committee is as follows:- Name of the Members Position Category Attendance *Mr. Mrugen Shah Chairman Independent & Non Executive Director 1 Mr. Rajendra Kumar Choudhary Member Whole Time Director 4 **Mr. Rajan Menda Member Independent & Non Executive Director 1 ***Mr. Vinod Kumar Agarwal Member Independent & Non Executive Director 3 * Mr. Mrugen Shah appointed as Director w.e.f. 14th August, 2010 ** Mr. Rajan Menda resigned as Director w.e.f. 14th August, 2010 *** Mr. Vinod Kumar Agarwal resigned as Director w.e.f. 30th March, 2011 During the financial year , four (4) Shareholders / Investors Grievance Committee meetings were held as under: 18th May, 2010, 14th August, 2010, 11th November, 2010 and 14th February, b) Terms of Reference: The Company has a Shareholders / Investors Grievance Committee, to look into redresses of Investors Complaints and requests such as delay in transfer of shares, non receipt of Dividend, Annual Report, revalidation of Dividend warrants etc. The committee deals with various matters relating to Transfer / transmission of shares. Issue of share certificate in lieu of lost, sub-divided, consolidated, rematerialized or defaced certificates. Consolidation / splitting of folios. Review of shares dematerialized and all other related matters. Investors grievance and redressal mechanism and recommend measures to improve the level of investors services. The share department of the Company and registrar and transfer agents i.e. System Support Services attend expeditiously to all grievances / correspondences of the shareholders / investors, received directly or through SEBI, Stock Exchanges, Ministry of Corporate Affairs, Registrar of Companies etc. The complaints are generally resolved within 30 days of receipt of letter, except in the cases that are constrained by disputes or legal impediment. c) Information on Investor Grievances for the period from 01st April, 2010 to 31st March, 2011: Brought Forward Received Afresh Disposed Carried Over Nil Nil Nil Nil d) Compliance Officer: Ms. Priyanka Jain, Company Secretary, is the compliance officer for complying with the requirements of SEBI (Prohibition of Insider Trading) Regulation, 1992 and the Listing Agreements with the BSE & NSE. 6. Code of Conduct and Ethics for Directors and Senior Management: The Company has laid down a code of conduct for all Board members and senior management personnel of the Company. A copy of the Code of conduct is available on the Company s website The Code has been circulated to all the members of the Board and Senior Management and the compliance of the same has been affirmed by them. A declaration signed by the Whole Time Director is given below:- I hereby confirm that The Company has obtained from all the members of the Board and Senior Management, affirmation that they have complied with the Code of Conduct and Ethics for Directors and Senior Management in respect of the Financial Year Rajendra Kumar Choudhary Whole Time Director 7. General Body Meetings: a) Details of the last three Annual General Meetings of the Company is given below: Financial Year AGM Date Locations Time No. of Special Resolutions Passed th 31st July, 2008 Goregaon Sports Club, Link Road, Malad p.m. Nil (West), Mumbai th 31st July, 2009 Goregaon Sports Club, Link Road, Malad p.m. Nil (West), Mumbai st 30th September, 2010 Goregaon Sports Club, Link Road, Malad (West), Mumbai p.m. Nil 11

12 22nd Annual Report b) No resolution was put through Postal Ballot during the year under reference. c) Extra Ordinary General Meeting of the Company was held on 19th February, 2011 during the year. d) Court Convened Meeting of shareholders of the Company was held on 18th May, 2010, during the year. 8. Subsidiary Company: The Company does not have any Subsidiary Company in terms of Clause 49 (III) of the Listing Agreement and hence, it is not required to have an independent director of the Company on the Board of such Subsidiary Company. 9. Compliance with other mandatory requirements: a) Disclosures: i) Materially significant related party transactions: There were no materially significant related party transactions i.e. transactions of the Company of material nature with its promoters, directors or the management, their subsidiary or relatives etc. during the year, that may have potential conflict with interest of the Company at large. ii) Disclosure of accounting treatment: In the preparation of financial statements, the Company has followed the Accounting Standards (AS) issued by the Institute of Chartered Accountants of India to the extent applicable. iii) Disclosure of Risk Management: The Company has laid down procedure to inform Board members about the risk assessment and minimization procedure. These would be periodically reviewed to ensure that executive management controls risks through means of a properly defined framework. iv) CEO / CFO Certification: In line with the requirements of Clause 49 (V) of the Listing Agreement, the Whole Time Director of the Company has submitted the CEO/CFO Certification, certifying to the Board inter alia that the Financial Statements and the Cash Flow Statements for the financial year ended on 31st March, 2011 were reviewed to the best of his knowledge and belief, that they do not contain any untrue statement, omit any material facts, are not misleading statements, together present a true and fair view and are in compliance with applicable laws and regulations. v) Statutory Compliance, Penalties and Strictures: The Company has complied with all requirements of the Listing Agreements entered into with Stock Exchanges as well as regulation and guidelines of SEBI. Consequently, there were no penalties imposed by either SEBI or the Stock Exchanges or any Statutory Authorities for non compliance of any matter related to the capital markets during last three years. 10. Means of Communication: Quarterly / Half yearly financial results sent to each shareholder s residence. In which newspapers quarterly, half yearly & Annual results were normally published. Any website, where results or official news are displayed. Whether Management Discussion & Analysis Report is a part of the Annual Report or not. 11. General Shareholder Information: a) 22nd Annual General Meeting: No, but published in the newspapers English: The Economic Times Marathi: Maharashtra Times Yes, it is part of Annual Report As Annexure - I Date 30th September, 2011 Venue 1st Floor, Landmark Building, Mith Chowky, Link Road, Malad (West), Mumbai Day and Time Friday, p.m. b) Financial Calendar: The Company follows the period of 01st April to 31st March, as the Financial Year. For the Financial Year , Financial Results will be announced as per the following tentative schedule. 1st Quarter ending June 2011 By 14th August, nd Quarter & Half Year ending September 2011 By 14th November, rd Quarter ending December 2011 By 14th February, th Quarter / year ending March 2012 Within 45/60 days from 31st March, 2012 Annual General Meeting for the Year By September, 2012 c) Book Closure & Dividend: Date of Book Closure Dividend payment date After 30th September, 2011 Monday, 26th September, 2011 to Friday, 30th September, 2011 (both days inclusive) 12

13 Bilpower Limited d) Listing: The Shares of the Company are listed on the Bombay Stock Exchange Limited (BSE) and National Stock Exchange of India Limited (NSE). e) Listing Fees to Stock Exchanges:- The Company has paid the Listing Fees for the year to both the above exchanges. f) Custodial Fees to Depositories:- The Company has paid the custodial fees for the year to National Securities Depository Limited (NSDL) and Central Depository Services (India) Limited (CDSL) on the basis of number of beneficial accounts maintained by them as on 31st March, g) Stock Code / Symbol:- Bombay Stock Exchange Ltd. (BSE) National Stock Exchange of India Ltd. (NSE) International Securities Identification Number (ISIN) Corporate Identity Number (CIN) BILPOWER EQ INE952D01018 L51420MH1989PLC Allotted by the Ministry of Corporate Affairs (MCA) h) Stock Market Price Data for the year in comparison to BSE Midcap Sensex:- BSE Share Price (`) NSE Share Price (`) BSE Midcap Sensex Month Open High Low Close Open High Low Close Open High Low Close April , , , , May , , , , June , , , , July , , , , Aug , , , , Sep , , , , Oct , , , , Nov , , , , Dec , , , , Jan , , , , Feb , , , , Mar , , , , Source : & j) Registrar and Share Transfer Agent:- Share transfers, dividend payment and all other investor related matters are attended to and processed by our Registrar and Share Transfer Agent viz. System Support Services. System Support Services 209, Shivai Industrial Estate, Near Logitech Park, 89 Andheri Kurla Road, Andheri (East), Mumbai Tel. No. 91 (22) sysss72@yahoo.com k) Share Transfer System:- Presently, the share transfers received by the R&TA of the Company are processed and returned within a period of 30 days from the date of its receipt, subject to documents being valid and complete in all respect. The Board has delegated the authority for approving the transfers to the registrar & transfer agent subject to approval by Grievance Committee. Shareholders Grievances and other miscellaneous correspondence on change of address, mandates, etc. received from Members are generally processed by R&TA of the Company within 30 days. The Company obtains from a Company Secretary in Whole-time Practice half yearly certificate of compliance with the share transfer formalities as required under clause 47 (c) of the Listing Agreement and files a copy of the certificate with BSE and NSE. 13

14 22nd Annual Report l) Distribution of Shareholding as on 31st March, 2011:- Range of Shareholding Number of Shareholders % of Total Number of Shares % of Total and above Total m) Shareholding pattern (category wise) as on 31st March, 2011:- Category Number of Shares held % of Total Shareholding Promoters (Incl. Person Acting in Concert) 42,34, Financial Institutions / Banks 0 0 Insurance Companies 2,97, NRI / Foreign Institutional Investors 0 0 Bodies Corporate 33,25, Public 26,42, Total 1,05,00, n) Dematerialization of shares and liquidity:- About 99.32% of the shares have been dematerialized as on 31st March, Trading in the shares of the Company is permitted in dematerialized form only as per notification issued by SEBI. o) Outstanding GDR / ADR / Warrants or any convertible instruments, conversion date and its impact on equity:- Nil p) Unclaimed Dividend: Section 205 of the Companies Act, 1956, mandates that a Company has to transfer dividend, which has been unclaimed for a period of seven years, from the unpaid dividend account to the Investor Education and Protection Fund (IEPF). In accordance with the following schedule, the dividend for the years mentioned as follows, if unclaimed within a period of seven years, will be transferred to IEPF. Date of declaration of dividend Dividend for the financial year Due date of transfer